Have about $130k sitting in a HYSA, in addition to my $50k emergency fund. Is this a good time to start DCA this amount in the market? Keep hearing markets are going to drop. Any suggestions will be appreciated.

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Why are you sitting on that much money? And unless you’ve got a big family or huge mortgage, that’s a very large emergency fund in my opinion.

Yes start DCA now. Time in market > timing the market and all that good stuff

likesmart

$130k is from a recent RE sale. I am comfortable keeping the large emergency fund. For $130k, how long do you suggest to DCA?

If you goal is DCA, you shouldn't be as focused on when the markets are going to drop. That is the point of DCA to eliminate market fluctuations. If you did lump sum - I'd say hold off. But DCA is the way to go

like

Wait for drop, then lump-sum. My gut says this is correct and I’ve been taking probiotic supplements. (I’m in the same boat as you OP but less dollar bills.)

funny

Math says to put it in as a lump sum, but you seem like you would be uncomfortable doing that. Next best option is to put around $25k (or whatever amount you can stomach) in each month until you’ve invested it all. The key is to create a calendar reminder for whatever day you are going to invest for each month right now, otherwise your brain will try to convince you that you can beat the market by waiting or investing more than planned - don’t listen to your brain - just stick with your plan.

like

Stats historically favor time in the market, aka lump sum, however many large companies are very uncertain of the economic outlook of the next year. Service jobs took the immediate brunt of the pandemic, white collar is next.

I’d DCA or wait for real estate if that’s something you want in your portfolio.

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